GSK continues sell-off of non-core assets

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Dive Brief:

GlaxoSmithKline announced Monday it will sell off non-core assets, continuing a strategy aimed at streamlining its business.

The British pharma is selling its anesthesia business to Aspen Therapeutics for £180 million ($240 million) upfront plus £100 million ($133 million).

In addition, the companies have ended their commercialization agreement in sub-Saharan Africa, but will continue to market their own products in the region.

Dive Insight:

GSK's anesthesia portfolio includes Ultiva, Nimbex, Tracrium, Mivacron and Anectine. The pharma previously sold off the commercialization rights to these products in both the U.S. and Canada. Together, the group of drugs brought in about £35 million in sales during the first half of the year.

On top of the sale of the anesthesia business, Aspen has exercised its right to purchase the remainder of GSK's thrombosis portfolio. The British pharma divested the thrombosis assets in 2013 to Aspen, but kept rights to the drugs in certain places like Macau, India, Pakistan, Hong Kong and China. Apsen will now take over rights in all of those territories.

GSK said the termination of the sub-Saharan Africa deal and the sales of the remainder of the thrombosis business are immaterial to earnings.

GlaxoSmithKline has been trying to move away from non-core areas of focus and create a portfolio that has strength in just a small number of areas, namely respiratory, HIV and vaccines.

The company conducted a major asset swap in 2015 with rival Novartis, trading its oncology portfolio and picking up the Swiss pharma's vaccine business. The pair also formed a joint venture in animal health with GSK maintaining the majority stake. Several months later, GSK divested the autoimmune indications, including in multiple sclerosis, of ofatumumab to Novartis in deal worth as much as $1 billion.